THE MUMBAI Metropolitan Region Development Authority (MMRDA) on Friday terminated its contract with LTSE — a joint venture between Larsen and Toubro Limited and Scomi Engineering BHD — that was tasked with operating the Monorail corridor in the city.
The authority took the decision after the company “failed to perform and fulfil contractual obligations” and “failed to maintain the quality of Monorail services”. MMRDA Commissioner R A Rajeev said, “The MMRDA had to take this unfortunate decision… terminate the contract that was entered into in 2008 when the first 9-km-long phase (of the Monorail) from Chembur to Wadala was opened for public.”
“The MMRDA gave LTSE a long rope to enable it to recover. However, the LTSE failed to supply the rolling stock trains (RST) and also operate and maintain the system on the entire corridor. Further, it failed to rectify defects as per the contractual clauses,” he added.
“This also resulted in inordinate delay in starting Monorail phase 2 from Wadala to S G Chowk. The LTSE failed to maintain the quality of Monorail services,” said Rajeev.
Officials said they will encash the bank guarantee of Rs 200 crore given by LTSE, since the contractor failed to respond to legal notices issued by MMRDA.
A statement by the MMRDA said that for the operation and maintenance of the Monorail, an external agency will be hired, but for now, MMRDA staff will look after the work. The Monorail service, the statement added, will run uninterrupted.